Product Management

1
Product Management

• Dimensions
• of
• Business

2
Why is this important?

• Engineering alone does not create wealth
• Beneficial change is achieved through
• Organisation, direction and coordination
• of People and resources
• one of which is Engineering.

3
Key Ingredients

• Engineering
• Marketing
• Management
• Money
• Sometimes Methodology is used for Engineering,
  making the 4 Ms

Engineering
Marketing
Enterprise
Management
Money
4
Start-up business success

• Some great successes
• Success rate is low
• Keys-
• Value for customer
• Dont run out of money

5
Engineering

• Creative
• Mathematical and numerical basis
• Working with natural laws
• Elegance of science and engineering solutions
• See engineering in product
• Impatience with people problems

6
Marketing

• Creative
• Customer needs basis
• Work with social laws
• People and relationships are key
• Market behaviour is key

7
Management

• Creativity not key
• Goal driven
• Profitability
• Timing, efficiency, deadlines
• People and relationships
• Smooth running

8
Finance

• Money is key
• Accountability, Tracking, Control
• Budgets and their application
• Cash Flow
• Financial control and targets
• Payback on investments

9
Potential Conflicts

• Engineering factors vs customer perception
• Marketing idea of a New Product
• Budget categories seen as inflexible
• Deadlines vs Engineering rightness

10
Role of Engineering

• Technology seed bed
• Concepts Þ Products
• Engineering planning
• Technical liaison
• Documentation

11
Technology Resource

• Repository of Corporate Technical Know-how
• Develop appropriate technical skills
• Develop know-how on applications
• Keep up with technical developments
• Develop new areas of useful expertise

12
Concepts to Products

• System Thinking
• Specification
• Function ilities
• Product Design
• Available materials and processes
• Test and Evaluation

13
Engineering Planning

• Product Development Schedule and Budget
• Resource requirements people and facilities
• Skills coordination
• Configuration management

14
Technical Liaison

• Sub-contractors
• Production engineering and manufacturing
• Quality control
• Service, Support, Spares
• Other company activities
• Serve in Integrated Product Teams (IPT)

15
Documentation

• Engineering Data Control
• Manuals
• QC data
• Engineering reports

The jobs not finished until the paper-work is
done!!
16
Role of Marketing

• Market Intelligence
• Creativity
• Strategic Planning
• Promotion
• Sales Strategies

17
Market Intelligence

• Identify and study customers
• Psychology, Wants, Preferences
• Demography, Spending pattern, Motivation
• Marketplace awareness
• New Technology awareness
• Understand competitors
• Contacts network
• Seek power and influence

18
Market Creativity

• New ways to present products
• New products
• Market developments (eg lifestyle)

19
Strategic Planning

• Plan market placement
• Plan development to achieve plan
• Long-term planning and positioning
• Market niche recognition
• Countering competition

20
Promotion

• Advertising image and methodology
• Public relations
• Company image development

21
Sales strategies

• Overall strategies
• Effect of strategies on product

22
Role of Management

• Planning
• Resourcing
• Co-ordination
• Control
• Reporting
• Management is the art of getting things done.

23
Management Planning

• Strategic, for company growth
• Structure supporting long-term goals
• Logistic support for day-to-day
• Production, sales and distribution
• Fail to plan plan to fail

24
Resourcing

• Personnel Management
• Training and skills development
• Supply and support of equipment
• Manufacturing facilities
• Scheduling
• Manufacturing
• Purchasing
• Distribution

25
Control

• Monitoring progress of plans
• Resource application
• Trouble shooting
• Comparing forecasts with actual, and acting

26
Reporting

• Reports to Shareholders
• Taxation reports
• Government regulatory reports
• Internal management reports

27
Role of Finance

• Ensure river of cash never runs dry.
• Financial planning.
• Financial reports.
• Cash receipts.
• Cash payments.

28
Financial planning

• Arranging for cash as needed
• For short term activities
• For long term activities
• Budgets
• Major credit requirements
• Liaison with lenders

29
Financial reports

• Accounts (PL, Balance Sheet etc)
• Taxation
• Management reports
• Merger and T.O. analysis
• Efficiency analysis

30
Cash control

• Cash receipts
• Debtor control
• Cash payments
• Wages and salaries
• Creditors
• Major outlays
• Dividends
• Taxation and government charges

31
Large vs Small Enterprises

• Majority of businesses are small
• SMEs employ the majority of people
• Treatment of subject appears to imply size, but
  same things must be done, large or small

32
Comparison

• Large Enterprise
• Many narrow specialists
• Slow to move and react
• Very large resources
• Large market strength
• Large influence
• Innovation difficult
• Financial mass and momentum

• Small Enterprise
• Few people, generalists
• fast reacting
• Small resources
• Brain power is company power
• Innovation easier
• Low financial mass

33
So...

• Management activities same
• Management styles different
• Management spread over different numbers of people

34
Tutorial

• Integrated Product Teams (IPTs) are becoming
  increasingly used to coordinate the four
  dimensions of the business in implementing
  business activities.
• Discuss the issues including-
• What IPTs are intended to achieve
• What skills should be represented
• Benefits and pitfalls